Mexico formalises tariffs on China, other Asian countries

The measure, enacted by the Ministry of Economy, imposes tariffs of up to 35 per cent on imports from Asian countries such as China, India, South Korea, Thailand and Indonesia and takes effect on Jan. 1.

The decree revises import tariffs on 1,463 product lines covering a wide range of goods in several industries, including automotive, textiles, apparel, plastics, steel, household appliances, aluminium, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles and glass.

The ministry said the measure aims to safeguard approximately 350,000 jobs nationwide in sensitive sectors such as footwear, textiles, apparel, steel and automotive manufacturing while contributing to the country's "sovereign, sustainable and inclusive reindustrialisation in strategic sectors of the Mexican economy."

The tariffs were approved earlier this month by the Mexican Congress, which emphasised that they are not directed at any specific country but are intended to strengthen industries considered strategic to the national economy.

The Mexican government said the tariffs seek to increase national content in production chains by 15 per cent, encouraging greater domestic production and the replacement of imported inputs with locally developed alternatives.

The policy is expected to lead to the creation of 1.5 million jobs and raise domestic investment to as much as 28 per cent of gross domestic product (GDP).